Monthly Archives: May 2017

Here’s Why #1

Investing used to be about having useful information and acting on it. Now information is abundant and delivery is measured by the millisecond. Investing is now about temperament, self-awareness and discipline; things that cannot be bought. How else would you be able to stay invested with “high” valuations in a long bull market? Here’s why: […]

Returns as Expected

With talk of extreme valuations in equity markets abound, you would think the past decade has been the most wild and euphoric bull market in some time. Here’s the hitch: in the decade ended December 31, 2016, SPY has returned 6.86% annually.  Yes, we saw a crash and subsequent slow grind to all time highs, […]

Is Passive investing aiding the momentum boom?

Perhaps the prominence of momentum and the obscurity of value investing lately is telling us something. Perhaps I’m following  human nature and trying to connect two unrelated things  time will tell. Companies who innovate and adopt technology will survive and if the old stalwarts don’t they may die. Conversely, maybe momentum is working because of […]

Has the internet structurally changed the stock markets multiples?

To experiment in a statistically valid fashion, one should gather robust data that spans long time frames. When P/E ratios are referenced to history, they tend to go back a century. A century ago 8% of households have a landline telephone. A century ago the first supermarket was founded. A century ago the hamburger buns […]